Shreyas Shipping associate Avana Logistek files for IPO

Avana Logistek Limited, a Mumbai-based logistics company, has filed a draft red herring prospectus with SEBI for an IPO. The IPO will comprise a fresh issue of shares for up to Rs 3 billion ($44 million) and an offer for sale of 4.3 million shares by promoter group firm Transworld Holdings Limited. Avana Logistek plans to utilise the net proceeds towards funding capital expenditure for setting up of new dry warehouses and cold storages and the repayment/prepayment of certain borrowings. Besides, the IPO proceeds will be used for the acquisition of containers for coastal and liner services, expenditure towards software development, implementation and maintenance works, and general corporate purposes. ICICI Securities and Axis Capital are the lead managers for the issue. At the end of March 2018, Transworld owned a 56.25 per cent stake in Shreyas Shipping and a 70.8 per cent stake in Avana Logistek, which was established as a result of a merger between Shreyas Relay Systems Limited (a subsidiary of Shreyas Shipping) and Balaji Shipping Lines in March 2017. After the merger, Shreyas Shipping’s stake in Avana fell to 29.22 per cent.